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5:30 PM ET, Tuesday, September 26, 2023

The Cipher Brief curates open source information from around the world that impacts national security. Here's a look at today's headlines, broken down by region of the world:  

TOP STORIES:

U.K. Links Former Fintech Executive to Five Suspected Russian Spies.  British prosecutors allege that Jan Marsalek, former executive of the Wirecard banking technology group, conspired with five Bulgarian nationals arrested in the U.K. on suspicion of spying for Russia.  The five alleged spies appeared in a London court on Tuesday, accused of collecting information from August 2020 to February 2023 to help Russia conduct “hostile action” against specific targets, including potential abductions.  The suspected spies did not enter pleas.  Officials say Marsalek, who is wanted in Germany for a 1.9-billion-euro fraud linked to Wirecard, obtained spy equipment and encrypted communications tools from one of the alleged spies.  Investigators also found evidence that Marsalek worked with Russia’s GRU military intelligence since 2015, helping Russian private military companies, gaining information from Austrian officials through bribes, and engaging in other assignments.  Marsalek reportedly fled to Russia in 2020 after the apparent fraud was discovered at Wirecard.  The U.K. government passed new legislation in July that criminalizes being an undeclared covert agent for a foreign power.  BBC Wall Street Journal Ukrinform 

Iran’s Foreign Minister Sought to Visit Washington.  Iranian Foreign Minister Hossein Amirabdollahian reportedly requested to visit Washington last week but was denied by the U.S. government.  Amirabdollahian made the request while participating at the U.N. General Assembly.  He reportedly sought to visit Iran’s consular operation in Washington.  U.S. State Department spokesperson Matthew Miller confirmed the request and denial, saying that the U.S. has the obligation to allow foreign officials to visit New York for UN-related business, but does not have an obligation to permit their travel to Washington.  He noted Iran’s wrongful detention of U.S. citizens and state sponsorship of “terrorism” as reasons for the denial of his request.  If Amirabdollahian made the visit, it would be the first by an Iranian foreign minister in 14 years.  Iran has yet to comment on Amirabdollahian’s request to visit Washington.  Separately, the U.K.-based Amwaj.media reported that Iranian Supreme Leader Ayatollah Ali Khamenei “granted permission” for direct talks with the U.S. on the nuclear issue, which would mark a major shift in U.S.-Iran negotiations, which are conducted through European and Arab intermediaries.  Tehran also did not comment on that report.  Al Jazeera Times of Israel Times of Israel

Iran Influence Operation Reaches Western Policy Centers.  Newly released documents shed light on the Iran Experts Initiative (IEI), a program started by the Iranian foreign ministry in 2014 to improve Tehran’s image abroad and extend its soft power.  Semafor and Iran International reported on the IEI, citing Iranian government correspondence and emails.  The documents show that IEI was started under Iranian President Hassan Rouhani, who sought greater engagement with the West, namely on the nuclear issue.  The IEI was made up of influential overseas researchers and academics who eventually achieved prolific media outreach and reportedly gained access to top U.S. and European policy circles.  Members remained connected to the Iranian government, touting the Rouhani administration’s calls for compromise on the nuclear issue, offering to ghostwrite op-eds for Iranian officials, and getting advice from the Iranian Foreign Ministry on what events to attend in the U.S. and Israel.  According to the documents, three of the top members of the IEI — Ali Vaez and Dina Esfandiary of the International Crisis Group (ICG), and Araine Tabatabai, current chief of staff for the Assistant Secretary of Defense for Special Operations — were, or became, top aides to Robert Malley, the Biden administration’s special envoy on Iran.  Malley was placed on leave in June after his security clearance was revoked and is reportedly being investigated by the FBI for mishandling classified information.  The reports on the IEI underscore Iran’s ability to manage global influence operations, though the reports also note that the more hardline Iranian government under President Ebrahim Raisi has largely shuttered channels through the IEI, even accusing some of the program’s members of inciting unrest in Iran.  ICG said the IEI was an “informal platform” to facilitate dialogue between researchers and Iranian officials and was supported by European entities.  ICG also noted the work it publishes is vetted in-house and disputes suggestions that Tehran could have directed staff members against the organization’s official positions.  The Pentagon and State Department did not comment on the substance of the reports, but said they support Tabatabai and say she was thoroughly and properly vetted.  Semafor Iran International

THE UKRAINE UPDATE:

Russian Attacks Hit Kherson, Dnipropetrovsk, Kharkiv.  Ukrainian officials reported several Russian attacks across Ukraine on Tuesday.  Kherson regional officials said Russian aircraft dropped a guided aerial bomb on a medical facility in the city of Beryslav.  Officials said they are still assessing the impact of the attack.  Russian troops also reportedly conducted heavy artillery and drone strikes on the southern city of Nikopol in Dnipropetrovsk region.  Regional officials said Russia used kamikaze drones in the attack and that three UAVs hit the city.  There were no reported casualties, though private houses, an infrastructure facility and a utilities company were damaged.  A Russian artillery strike on Vovchansk in the Kharkiv region injured one person, according to Ukraine’s General Prosecutor’s Office.  Ukrinform Ukrinform Kyiv Independent 

Norway Pledges $92 Million in Humanitarian Aid for Ukraine.  Norway is pledging 1 billion Norwegian kroner ($92 million) in humanitarian assistance to help Ukraine prepare for the upcoming winter.  The Norwegian government said the aid will ensure basic needs like shelter, food, water and sanitation are provided to the most vulnerable populations, along with education, health care, psychological support and protection against sexualized and gender-based violence.  The aid will be distributed through existing U.N. and Red Cross programs.  Kyiv Independent Ukrinform CNN 

U.S. Outlines Anti-Corruption Reforms for Ukrainian Government.  U.S. Deputy National Security Advisor Mike Pyle sent a letter to the offices of the Ukrainian president and prime minister detailing a timeline for reforms Ukraine should implement to curb waste and counter corruption.  The letter reportedly suggested linking future aid to deadlines for implementation of the reforms.  Nearer-term changes focus on good governance of state-owned enterprises, the judiciary and anti-corruption bodies, while long-term changes focus on reform at large state institutions involved in Ukraine’s security and economy.  The publication of the U.S. expectations will likely increase pressure on Kyiv to enact the reforms, adding to President Volodymyr Zelensky’s efforts to stamp out corruption and modernize the government amid Russia’s invasion.  New York Times Stratfor 

Ukraine Says All 7 Steps for EU Accession Talks Implemented.  Ukrainian Prime Minister Denys Shmyhal announced Tuesday that Ukraine has approved the “Unity in Diversity” State Target Program and has therefore implemented all seven steps recommended by the EU for accession talks to begin.  These seven recommendations include steps such as reforming the Constitutional Court, the media, anti-corruption organs, and Ukraine’s legal framework for national minorities.  Ukraine officially applied for EU membership in February 2022, days after Russia launched its invasion, and was granted candidacy status in June 2022.  EU officials have said Ukraine is likely to be able to ensure the implementation of all agreed legislative and institutional steps for accession talks to start the end of the year.  Kyiv Independent

Russian Court Upholds 19-Year Prison Sentence for Navalny.  On Tuesday, prominent Russian opposition leader Alexei Navalny lost his appeal against a 19-year prison sentence, which extends his total prison sentence to over 30 years.  Navalny now potentially faces a transfer to one of Russia’s “special regime” prison colonies, which is the harshest grade of prison in Russia.  Navalny will potentially remain there until his mid-70s. In the hearing, Navalny and his lawyers rejected all of the charges against him.  Reuters

THE CYBER AND TECH RUNDOWN:

CISA Task Force Issues Framework To Reduce Hardware Supply Chain Risks.  A task force of the Cybersecurity and Infrastructure Security Agency (CISA) Monday issued a framework for a hardware bill of materials (HBOM) to be used voluntarily by customers and vendors to help manage supply chain risks.  CISA said the HBOM framework would aid transparency and traceability of supply chain transactions, thereby “ensuring that the digital landscape remains robust and secure against emerging threats and challenges.”  A joint government-industry task force developed the framework, which provides a methodology for naming component attributes and the format to be used in identifying different kinds of components.  HBOM’s can be used as a checkpoint for vulnerabilities as well as for regulatory compliance.  John Miller, the co-chair of the Information and Communications Technology Supply Chain Risk Management Task Force, said the HBOM process “gives organizations a useful tool to evaluate supply chain risks with a consistent and predictable structure for a variety of use cases.”  Washington Post NextGov

DoD Senior Steering Group Named To Spearhead Replicator Initiative.  A Pentagon body, the Deputy’s Innovation Steering Group (DISG), will play a pivotal role in advancing the recently announced “Replicator” drone initiative.  According to DefenseScoop, the DISG will conduct a government-only launch event this week.  A memorandum from Deputy Defense Secretary Kathleen Hicks identifies the DISG as the DoD component that will move quickly to evaluate and implement solutions “for key operational problems facing the Joint Force in under 18 months.”  The memo, which has not been publicly released, was sent to Pentagon leaders, including the combatant commands, other senior DoD officials, and field activity directors.  Questions have been mounting about the mechanics and deliverables of the Replicator initiative, including its ambitious 18-24 month timeframe, and the funding sources for initiative projects.  DefenseScoop notes that the memo does not explicitly mention Replicator, but a Pentagon spokesperson confirmed that the initiative will be the first operational “gap” to be addressed by the DISG.  Hicks’ memo described the DISG process, stating that it will focus on “joint operational gaps that the services are not fully resourcing that need deliberate attention inside the Future Years Defense Program and address a combatant command problem.”  The memo underscores that only one operational gap at a time will receive priority attention during an 18-month timespan.  The Pentagon also confirmed that a kickoff event involving Hicks, Defense Innovation Unit Chief Doug Beck, and Adm. Christopher Grady, vice chair of the Joint Chiefs of Staff, will take place on Thursday.  The memo notes that the initial activity of the DISG will pursue solutions “where leveraging commercial technologies and non-traditional scaling approaches can complement more traditional capability development and acquisition pathways.”  DefenseScoop

Wall Street Journal Cites Production, Skill Shortage Obstacles to DoD Drone Goals.  The Pentagon’s Replicator drone initiative, which aims to produce and deploy thousands of unmanned platforms operating on land, sea, and air in the next 24 months, may face substantial challenges in the form of surging demands in the commercial aerospace sector that have shortages of skilled labor, raw materials, and components.  A consulting firm, Oliver Wyman, recently issued a report that noted Replicator’s projected volumes and variety demand manufacturing capacity and flexibility “not typically found in the defense industrial base.”  A supply chain expert with another consulting firm, AeroDynamic Advisory, explained that the aerospace industry is encountering difficulties “meeting targets with fighter jets that have extremely well-established supply chains and contractor bases.”  Brandon Tseng, co-founder of Shield AI, said his company, which has produced small drones for the U.S. military, plans to increase production to 100 drones this year, with eventual output of 1,000 per year over the next several years.  Tseng points to the experience of Elon Musk’s Tesla, which will manufacture 1.8 million electric vehicles this year from a starting point of 100,000 in 2017.  “Tesla proves it can be done,” Tseng said. Gen. Dale White, head of the fighters and advanced aircraft programs at Wright-Patterson Air Force Base, described Air Force plans for scalable, low-cost manufacturing, which includes modifying security classification on some projects so that vendors can reduce the number of staff with top-secret clearances.  Joby Aviation, a large air-taxi manufacturer, has announced plans for a Dayton, Ohio factory with a workforce of up to 2,000, located close by Wright-Patterson Air Force Base.  Wall Street Journal

China-Linked Hackers Targeting Mobile Devices of Ethnic Minority, Taiwan Users.  Chinese-linked hackers are conducting data theft operations focused on mobile devices used by members of the Tibetan and Uyghur ethnic minorities in China as well as users in Taiwan.  Volexity, a U.S. cybersecurity firm, said the hacking campaign features attempts to infiltrate malware into mobile devices to gain access to internal data and operations.  Volexity attributes the attacks to EvilBamboo, formerly known as Evil Eye.  Three types of malware have been detected that are capable of collecting basic device information.  If a user employs the MetaMask browser extension any Ethereum accounts can be listed.  Volexity researchers report that the threat actors have spread malware through fake websites advertising the Signal, Telegram, and WhatsApp messaging services.  Some of the bogus websites carry content or surveys on Taiwan’s independence, through which attackers attempt to load a custom JavaScript profiling framework which can identify devices running iOS and be used to selectively deliver malware.  The hacking operation also uses social media to pose as legitimate popular communities through which malware can be distributed.  Fake profiles on Facebook, Instagram, Reddit, X, and YouTube are likely to have been used to deploy browser-based exploits against targeted users.  Cybernews

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North Korea Says No Choice But to Continue Military Buildup for ‘Self-Defense.’  North Korea’s envoy to the U.N., Ambassador Kim Song, accused the U.S. and South Korea of pushing the Korean peninsula closer to the brink of nuclear war.  Speaking at the U.N. General Assembly, Kim also accused the U.S. of making 2023 an “extremely dangerous year” and trying to create an “Asian version of NATO.”  He said such circumstances have left Pyongyang no choice but to build up its “self-defense capabilities.”  In the past 18 months, North Korea has tested dozens of ballistic missiles.  The U.S. has also warned that Pyongyang is ready to carry out its seventh nuclear test.  Reuters

U.S. Sanctions Members of Mexico’s Sinaloa Cartel, Colombian Narco Leader.  The U.S. sanctioned nine members of Mexico’s Sinaloa drug Cartel and the leader of Colombia’s Clan del Golfo drug trafficking organization on Tuesday.  The individuals linked to the Sinaloa cartel are accused of trafficking fentanyl and other drugs for distribution in the U.S.  The Colombian narco leader is Jobanis de Jesus Avila Villadiego, also known as ‘Chiquito Malo.’  The U.S. State Department believes he is responsible for the majority of cocaine production and trafficking in Colombia.  He is also accused of ordering a murder campaign targeting Colombian security officials following an announcement that a former Clan del Golfo leader would be extradited to the U.S.  Reuters

Jordan Intercepts Two Drones Carrying Drugs from Syria.  The Jordanian military said Tuesday that it downed two drones carrying drugs from Syria, highlighting concerns over an increase in smuggling across the border.  The army statement said that both of the drones and their cargo of crystal methamphetamine were seized.  Officials say that the use of drones to smuggle drugs, weapons, and explosives is complicating the cross-border drug war that Jordan blames on Iranian-backed militias in southern Syria .  Syria is accused of manufacturing the highly addictive and profitable amphetamine captagon and other drugs for smuggling through Jordan into the Gulf.  Syrian President Bashar al-Assad has denied these allegations, calling them a Western plot against Syria.  Jordanian officials have said that talks with senior Syrian officials on Iranian-run smuggling networks have made no progress due to Damascus’s inability to impose order in southern Syria.  Reuters

Israel’s Tourist Minister Visits Saudi Arabia, Marking First by Israeli Cabinet Member. Israeli Tourism Minister Haim Katz visited Saudi Arabia on Tuesday for a U.N. World Tourism Organization event.  This marks the first public visit to Saudi Arabia by any Israeli cabinet member.  Katz’s visit comes as Saudi Arabia and Israel discuss a potential U.S.-brokered agreement to normalize ties.  Al Jazeera Bloomberg Reuters

Saudi Foreign Minister Visits Qatar. Saudi Arabian Foreign Minister Prince Faisal bin Farhan Al Saud met with Emir of Qatar Sheikh Tamim bin Hamad Al Thani on Tuesday in Doha. The pair reportedly discussed “fraternal” relations between their two countries as well as regional and international issues.  Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani was also present during the meeting.  Doha and Riyadh have maintained friendly relations since Saudi Arabia ended its blockade of Qatar in 2021, which it imposed in 2017 over claims that Qatar was too close with Iran and supported “terrorist” groups in the region, which Qatar has denied.  Al Jazeera

Azerbaijan Says Won’t Use Force to Create Land Corridor through Armenia.  Azerbaijan says it does not seek to create a land corridor through southern Armenia to its Nakhchivan exclave using force.  Hikmet Hajiyev, foreign policy advisor to Azerbaijani President Ilham Aliyev, told Reuters on Tuesday that instead of military action, Baku is suggesting building “connectivity lines, transport lines, in a very peaceful manner” in the region.  His comments came after Aliyev met with Turkish President Recep Tayyip Erdogan in Nakhchivan to discuss the land corridor, which would connect Azerbaijan to Turkey through the exclave.  Some Armenians have expressed fears that Azerbaijani forces will target Armenia’s southern province of Syunik to establish the land corridor following Azerbaijan’s military operation last week to take control of the Nagorno-Karabakh region.  Reuters

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